[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1270 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1270

   To increase accountability for Government spending and to reduce 
                     wasteful Government spending.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 2001

 Mr. DeFazio introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
  Energy and Commerce, Armed Services, Science, Resources, Financial 
Services, International Relations, Veterans' Affairs, and Intelligence 
 (Permanent Select), for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To increase accountability for Government spending and to reduce 
                     wasteful Government spending.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Comprehensive 
Fiscal Responsibility and Accountability Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--INCREASED ACCOUNTABILITY AND REDUCTION IN MEDICARE WASTE AND 
                                 FRAUD

Sec. 101. Increased medical reviews and antifraud activities.
Sec. 102. Expansion of medicare senior waste patrol nationwide.
Sec. 103. Application of inherent reasonableness to all Part B services 
                            other than physicians' services.
Sec. 104. Implementation of commercial claims auditing systems.
 TITLE II--INCREASED ACCOUNTABILITY AND REDUCTION OF WASTEFUL DEFENSE 
                                SPENDING

Sec. 201. Cancellation of F-22 aircraft program.
Sec. 202. Cancellation of Comanche helicopter program.
Sec. 203. Cancellation of Crusader artillery program.
Sec. 204. Cancellation of V-22 aircraft program.
Sec. 205. Limitation on procurement of Virginia class attack 
                            submarines.
Sec. 206. Termination of production of Trident D5 missiles.
Sec. 207. Reduction in nuclear delivery systems within overall limits 
                            of START II.
Sec. 208. Creation of common NATO airlift capability and reduction of 
                            United States costs for C-17 aircraft.
Sec. 209. Deferral of procurement of additional C-130 tactical airlift 
                            planes.
Sec. 210. Reduction in requirements for Air Force and Navy pilots in 
                            nonflying positions.
Sec. 211. Reduction in number of officers so as to return to enlisted-
                            to-officer ratio in existence in 1989.
Sec. 212. Placement of Selective Service System in ``deep standby'' 
                            status.
Sec. 213. End of taxpayer support for defense industry mergers.
Sec. 214. Reduction of United States support for weapons sales abroad 
                            by eliminating future assistance under the 
                            Foreign Military Financing program.
Sec. 215. Limitation on proposed increases for National Missile Defense 
                            to fiscal year 2000 levels.
Sec. 216. Reduction of Central Intelligence Agency budget by 10 
                            percent.
     TITLE III--REDUCTION AND REFORM OF ANTIENVIRONMENTAL SPENDING

               Subtitle A--Program Terminations and Fees

Sec. 301. Nuclear Energy Research Initiative.
Sec. 302. National Ignition Facility.
Sec. 303. Tokamak Fusion Reactors.
Sec. 304. Diesel engine research.
Sec. 305. Nuclear waste fund fee.
                     Subtitle B--Mining Provisions

Sec. 311. Definitions.
Sec. 312. Royalties.
Sec. 313. Limitation on patent issuance.
Sec. 314. Mining claim maintenance requirements.
Sec. 315. Savings clause.
         TITLE IV--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Sec. 401. Repeal of exclusion of certain income of foreign sales 
                            corporations.
Sec. 402. Denial of deduction for payments of excessive compensation.
Sec. 403. Disallowance of deductions for advertising and promotional 
                            expenses relating to tobacco product use.
Sec. 404. Source of income from certain sales of inventory property.
 TITLE V--MISCELLANEOUS PROVISIONS TO REDUCE WASTEFUL AND INEFFICIENT 
                                SPENDING

Sec. 501. International space station.
Sec. 502. Overseas Private Investment Corporation.
Sec. 503. Prohibition on provision of new credit by the Export-Import 
                            Bank of the United States.
Sec. 504. Trade and Development Agency.
Sec. 505. Termination of international broadcasting authorities.
Sec. 506. Joint procurement of pharmaceuticals by the Department of 
                            Defense and the Department of Veterans 
                            Affairs.

 TITLE I--INCREASED ACCOUNTABILITY AND REDUCTION IN MEDICARE WASTE AND 
                                 FRAUD

SEC. 101. INCREASED MEDICAL REVIEWS AND ANTIFRAUD ACTIVITIES.

    Section 1893(d) of the Social Security Act (42 U.S.C. 1395ddd(d)) 
is amended by inserting after paragraph (3) the following:
            ``(4) In the case of the year 2002 and each subsequent 
        year, procedures to ensure that--
                    ``(A) the number of medical reviews, utilization 
                reviews, and fraud reviews in a fiscal year of 
                providers of services and other individuals and 
                entities furnishing items and services for which 
                payment may be made under this title (as a percentage 
                of total claims paid) is equal to at least twice the 
                number of such reviews that were conducted in fiscal 
                year 2000;
                    ``(B) the number of provider cost reports audited 
                in a fiscal year is equal to at least--
                            ``(i) 15 percent of those submitted by a 
                        home health agency or a skilled nursing 
                        facility; and
                            ``(ii) twice the number of such reports 
                        that were audited in fiscal year 2000 for those 
                        submitted by any other provider of services or 
                        any other individual or entity furnishing items 
                        and services for which payment may be made 
                        under this title; and
                    ``(C) in determining which providers of services, 
                individuals, entities, or cost reports to review or 
                audit, priority is placed on providers, individuals, 
                entities, and areas that the Secretary determines are 
                subject to abuse and most likely to result in 
                mispayment or overpayment recoveries.''.

SEC. 102. EXPANSION OF MEDICARE SENIOR WASTE PATROL NATIONWIDE.

    There are authorized to be appropriated $25,000,000 in fiscal year 
2002, and such sums as are necessary for fiscal years 2003 through 
2005, for the purpose of carrying out, and expanding nationwide, the 
Health Care Anti-Fraud, Waste and Abuse Community Volunteer 
Demonstration Projects conducted by the Administration on Aging 
pursuant to the Omnibus Consolidated Appropriations Act, 1997 (Public 
Law 104-208).

SEC. 103. APPLICATION OF INHERENT REASONABLENESS TO ALL PART B SERVICES 
              OTHER THAN PHYSICIANS' SERVICES.

    (a) Repeal of Certain Provisions of the Balanced Budget Act of 
1997.--
            (1) Repeal.--Section 4316 of the Balanced Budget Act of 
        1997 (Public Law 105-33; 111 Stat. 390), and the amendments 
        made by such section, are repealed effective August 5, 1997.
            (2) Applicability.--Effective August 5, 1997, the Social 
        Security Act shall be applied and administered as if section 
        4316 of the Balanced Budget Act of 1997 (Public Law 105-33; 111 
        Stat. 390), and the amendments made by such section, had not 
        been enacted.
    (b) Application of Inherent Reasonableness to All Part B Services 
Other Than Physicians' Services.--
            (1) In general.--Section 1842(b)(8) of the Social Security 
        Act (42 U.S.C. 1395u(b)(8)) is amended to read as follows:
    ``(8) The Secretary shall describe by regulation the factors to be 
used in determining the cases (of particular items or services) in 
which the application of this part (other than to physicians' services 
paid under section 1848) results in the determination of an amount 
that, because of its being grossly excessive or grossly deficient, is 
not inherently reasonable, and provide in those cases for the factors 
to be considered in establishing an amount that is realistic and 
equitable.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect August 5, 1997.

SEC. 104. IMPLEMENTATION OF COMMERCIAL CLAIMS AUDITING SYSTEMS.

    (a) Commercial Claims Auditing Systems.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall require medicare 
        carriers to use commercial claims auditing systems in the 
        processing of claims under part B of the medicare program under 
        title XVIII of the Social Security Act (42 U.S.C. 1395j et 
        seq.) for the purpose of identifying billing errors and abuses.
            (2) Supplement to other technology.--Commercial claims 
        auditing systems required under paragraph (1) shall be used as 
        a supplement to any other information technology used by 
        medicare carriers in processing claims under the medicare 
        program.
            (3) Uniformity.--In order to ensure uniformity in 
        processing claims under the medicare program, the Secretary may 
        require that medicare carriers utilize 1 or more common 
        commercial claims auditing systems, provided that the selection 
        of such system or systems by the Secretary shall be--
                    (A) after due consideration of competing 
                alternative systems; but
                    (B) without regard to any provision of law that 
                requires the use of competitive procedures (as defined 
                in section 4 of the Office of Federal Procurement 
                Policy Act (41 U.S.C. 403)) or the publication of 
                notice of proposed procurements.
            (4) Implementation.--Commercial claims auditing systems 
        required under paragraph (1) shall be implemented by all 
        medicare carriers by not later than 180 days after the date of 
        enactment of this Act.
    (b) Minimum Software Requirements.--Any commercial claims auditing 
system required to be implemented pursuant to subsection (a) shall, at 
a minimum--
            (1) be a commercial item;
            (2) surpass the capability of systems currently used in the 
        processing of claims under part B of the medicare program; and
            (3) be modifiable to--
                    (A) satisfy pertinent statutory requirements of the 
                medicare program; and
                    (B) conform to policies of the Secretary regarding 
                claims processing under such program.
    (c) Disclosure.--
            (1) In general.--Except as provided in paragraph (2), 
        notwithstanding any other provision of law, any information 
        technology (or data related thereto) utilized by medicare 
        carriers in establishing a commercial claims auditing system 
        pursuant to subsection (a) shall not be subject to public 
        disclosure.
            (2) Authorized disclosure.--The Secretary may authorize the 
        public disclosure of the information described in paragraph (1) 
        if the Secretary determines that--
                    (A) release of such information is in the public 
                interest; and
                    (B) the information to be released is not protected 
                from disclosure under section 552(b) of title 5, United 
                States Code.
    (d) Definitions.--In this section--
            (1) Commercial claims auditing system.--The term 
        ``commercial claims auditing system'' means a commercial 
        specialized auditing system that includes edits which identify 
        inappropriately coded health care claims.
            (2) Commercial item.--The term ``commercial item'' has the 
        meaning given such term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
            (3) Information technology.--The term ``information 
        technology'' has the meaning given such term in subparagraphs 
        (A) and (B) of section 5002(3) of the Information Technology 
        Management Reform Act of 1996 (40 U.S.C. 1401(3)), were such 
        information technology to be acquired by an executive agency.
            (4) Medicare carrier.--The term ``medicare carrier'' means 
        an entity that has a contract with the Secretary pursuant to 
        section 1842(a) of the Social Security Act (42 U.S.C. 
        1395u(a)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

 TITLE II--INCREASED ACCOUNTABILITY AND REDUCTION OF WASTEFUL DEFENSE 
                                SPENDING

SEC. 201. CANCELLATION OF F-22 AIRCRAFT PROGRAM.

    The Secretary of the Air Force shall cancel the F-22 Raptor 
aircraft program. No funds may be obligated for that program after the 
date of the enactment of this Act.

SEC. 202. CANCELLATION OF COMANCHE HELICOPTER PROGRAM.

    The Secretary of the Army shall cancel the Comanche helicopter 
program. No funds may be obligated for that program after the date of 
the enactment of this Act.

SEC. 203. CANCELLATION OF CRUSADER ARTILLERY PROGRAM.

    The Secretary of the Army shall cancel the Crusader artillery 
program. No funds may be obligated for that program after the date of 
the enactment of this Act.

SEC. 204. CANCELLATION OF V-22 AIRCRAFT PROGRAM.

    The Secretary of the Navy shall cancel the V-22 Osprey aircraft 
program. No funds may be obligated for that program after the date of 
the enactment of this Act.

SEC. 205. LIMITATION ON PROCUREMENT OF VIRGINIA CLASS ATTACK 
              SUBMARINES.

    Through fiscal year 2010, the Secretary of the Navy may enter into 
contracts for the procurement of no more than eight Virginia class 
submarines (including contracts entered into before the date of the 
enactment of this Act).

SEC. 206. TERMINATION OF PRODUCTION OF TRIDENT D5 MISSILES.

    No funds may be obligated after the date of the enactment of this 
Act for production of Trident D5 missiles.

SEC. 207. REDUCTION IN NUCLEAR DELIVERY SYSTEMS WITHIN OVERALL LIMITS 
              OF START II.

    The President shall take such steps as necessary to reduce the 
nuclear delivery systems of the United States so as to bring the number 
of such systems within the overall START II limits. For purposes of 
this section, the term ``overall START II limits'' means the 
limitations on nuclear delivery systems that would be in effect under 
the START II Treaty, if ratified.

SEC. 208. CREATION OF COMMON NATO AIRLIFT CAPABILITY AND REDUCTION OF 
              UNITED STATES COSTS FOR C-17 AIRCRAFT.

    The Secretary of Defense shall seek to reach an agreement with the 
other member nations of the North Atlantic Treaty Organization to 
establish a common NATO airlift capability consisting of 20 C-17 
aircraft with a cost-sharing arrangement similar to that for the common 
NATO AWACS fleet. The 20 C-17 aircraft programmed by the Air Force for 
procurement in fiscal years 2002 and 2003 shall be transferred to NATO 
for that common NATO airlift capability upon such an agreement being 
entered into.

SEC. 209. DEFERRAL OF PROCUREMENT OF ADDITIONAL C-130 TACTICAL AIRLIFT 
              PLANES.

    The Secretary of the Air Force may not enter into a contract for 
procurement of additional C-130 aircraft for fiscal years 2002 through 
2006.

SEC. 210. REDUCTION IN REQUIREMENTS FOR AIR FORCE AND NAVY PILOTS IN 
              NONFLYING POSITIONS.

    The Secretary of the Air Force and the Secretary of the Navy shall 
each evaluate nonflying positions in the Air Force and the Navy, 
respectively, that are currently required to be held by pilots and, to 
the maximum extent practicable, shall modify the qualifications for 
those positions to reduce the requirements for pilots for those 
positions.

SEC. 211. REDUCTION IN NUMBER OF OFFICERS SO AS TO RETURN TO ENLISTED-
              TO-OFFICER RATIO IN EXISTENCE IN 1989.

    The Secretary of Defense shall implement a program to reduce the 
ratio of enlisted-to-officer personnel of each of the Army, Navy, Air 
Force, and Marine Corps to a ratio of at least six-to-one by not later 
than January 1, 2006. The Secretary shall carry out that program 
through reductions in officer promotions to general and flag officer 
grades and through reductions in the number of officers in pay grades 
O-4, O-5, and O-6 through voluntary programs under existing provisions 
of law, including temporary early retirement authority, voluntary 
separation incentive, and the special separation benefit.

SEC. 212. PLACEMENT OF SELECTIVE SERVICE SYSTEM IN ``DEEP STANDBY'' 
              STATUS.

    (a) Restriction of Registration Requirement to Periods of National 
Emergencies.--(1) Section 3(a) of the Military Selective Service Act 
(50 U.S.C. App. 453(a)) is amended by inserting after ``this title,'' 
the following: ``during any period in which a declaration of national 
emergency is in effect,''.
    (2) Section 3 of such Act (50 U.S.C. App. 453) is further amended 
by adding at the end the following new subsections:
    ``(c) The President shall have the authority to declare a period of 
national emergency during which the registration requirements of 
subsection (a) shall apply. Subject to subsection (d), the President 
shall provide for the prompt termination of the declaration of national 
emergency upon the termination of the national emergency.
    ``(d) A declaration of national emergency under subsection (c) 
shall terminate upon the expiration of a 10-day period of continuous 
session of Congress after the date of the declaration unless Congress 
enacts a law before the end of that period ratifying that specific 
declaration. For purposes of this subsection, the continuity of a 
session of Congress is broken only by an adjournment of the Congress 
sine die, and the days on which either House is not in session because 
of an adjournment of more than three days to a day certain are excluded 
in the computation of the 10-day period.''.
    (3) Section 12 of such Act (50 U.S.C. App. 462) is amended by 
adding at the end the following new subsection:
    ``(h) In addition to the exception provided by subsection (g), a 
person may not be denied a right, privilege, benefit, or employment 
position under Federal law on the grounds that the person failed to 
present himself for and submit to registration under section 3 before 
the date of the enactment of this subsection.''.
    (b) Suspension of Activities of Selective Service System Boards.--
Section 17 of such Act (50 U.S.C. App. 467) is amended by adding at the 
end the following new subsection:
    ``(d) Except during any period in which a declaration of national 
emergency is in effect under section 3--
            ``(1) the President may not appoint a person as a member of 
        a civilian local board, civilian appeal board, or similar local 
        agency of the Selective Service System; and
            ``(2) any such board established under section 10(b)(3) may 
        not meet.''.
    (c) Report on Standby Registration Program for Use During National 
Emergencies.--Not later than 150 days after the date of the enactment 
of this Act, the Director of the Selective Service System shall submit 
to Congress a report detailing a standby emergency manpower 
mobilization program to be used by the Selective Service System during 
periods in which a declaration of national emergency is in effect for 
the registration of persons who would be subject to registration under 
section 3 of the Military Selective Service Act (50 U.S.C. App. 453) 
during such a period. The report shall include an estimate of the cost 
to implement and operate the standby program and an evaluation of the 
feasibility of using existing and emerging information systems 
available to the Government to improve the effectiveness of any 
registration requirements.

SEC. 213. END OF TAXPAYER SUPPORT FOR DEFENSE INDUSTRY MERGERS.

    Expenses incurred by a defense contractor related to a corporate 
merger may not be considered to be an allowable cost under a Department 
of Defense contract, and no funds appropriated to the Department of 
Defense may be used to reimburse a contractor for any such expense.

SEC. 214. REDUCTION OF UNITED STATES SUPPORT FOR WEAPONS SALES ABROAD 
              BY ELIMINATING FUTURE ASSISTANCE UNDER THE FOREIGN 
              MILITARY FINANCING PROGRAM.

    After the date of the enactment of this Act, no new loan, grant, or 
other assistance may be provided under the ``Foreign Military Financing 
Program'' account under section 23 of the Arms Export Control Act (22 
U.S.C. 2763).

SEC. 215. LIMITATION ON PROPOSED INCREASES FOR NATIONAL MISSILE DEFENSE 
              TO FISCAL YEAR 2000 LEVELS.

    The amount appropriated for the National Missile Defense program of 
the Department of Defense for any fiscal year may not exceed the amount 
appropriated for that program for fiscal year 2000, adjusted for 
inflation.

SEC. 216. REDUCTION OF CENTRAL INTELLIGENCE AGENCY BUDGET BY 10 
              PERCENT.

    The total amount obligated for programs and activities of the 
Central Intelligence Agency for fiscal year 2002 may not exceed 90 
percent of the total amount obligated for programs and activities of 
the Central Intelligence Agency for fiscal year 2001.

           TITLE III--REDUCTION AND REFORM OF ANTIENVIRONMEN
                              TAL SPENDING

               Subtitle A--Program Terminations and Fees

SEC. 301. NUCLEAR ENERGY RESEARCH INITIATIVE.

    The Department of Energy shall not obligate any further funding for 
the Nuclear Energy Research Initiative.

SEC. 302. NATIONAL IGNITION FACILITY.

    The Department of Energy shall not obligate any further funding for 
the National Ignition Facility.

SEC. 303. TOKAMAK FUSION REACTORS.

    The Department of Energy shall not obligate any further funding for 
Tokamak fusion reactors.

SEC. 304. DIESEL ENGINE RESEARCH.

    The Department of Energy shall not obligate any further funding for 
research on diesel engines for cars and light trucks.

SEC. 305. NUCLEAR WASTE FUND FEE.

    (a) Fee Adjustment.--Section 302(a)(2) of the Nuclear Waste Policy 
Act of 1982 is amended by adding at the end the following new sentence: 
``The Secretary shall adjust the fee annually for inflation.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 90 days after the date of enactment of this section.

                     Subtitle B--Mining Provisions

SEC. 311. DEFINITIONS.

    For purposes of subtitle:
            (1) The term ``locatable mineral'' means any mineral not 
        subject to disposition under any of the following:
                    (A) The Mineral Leasing Act (30 U.S.C. 181 et 
                seq.).
                    (B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 
                et seq.).
                    (C) The Act of July 31, 1947, commonly known as the 
                Materials Act of 1947 (30 U.S.C. 601 et seq.).
                    (D) The Mineral Leasing for Acquired Lands Act (30 
                U.S.C. 351 et seq.).
            (2) The term ``mineral activities'' means any activity for, 
        related to or incidental to mineral exploration, mining, 
        beneficiation and processing activities for any locatable 
        mineral, including access. When used with respect to this term:
                    (A) The term ``exploration'' means those techniques 
                employed to locate the presence of a locatable mineral 
                deposit and to establish its nature, position, size, 
                shape, grade and value.
                    (B) The term ``mining'' means the processes 
                employed for the extraction of a locatable mineral from 
                the earth.
                    (C) The term ``beneficiation'' means the crushing 
                and grinding of locatable mineral ore and such 
                processes as are employed to free the mineral from 
                other constituents, including but not necessarily 
                limited to, physical and chemical separation 
                techniques.
                    (D) The term ``processing'' means processes 
                downstream of beneficiation employed to prepare 
locatable mineral ore into the final marketable product, including but 
not limited to, smelting and electrolytic refining.
            (3) The term ``mining claim'' means a claim for the 
        purposes of mineral activities.
            (4) The term ``net smelter return'' shall have the same 
        meaning as the term defined in section 613(c)(1) of the 
        Internal Revenue Code.
            (5) The term ``Secretary'' means the Secretary of the 
        Interior acting through the Director of the Minerals Management 
        Service.
            (6) The term ``substantial underreporting'' means the 
        difference between the royalty on the value of the production 
        which should have been reported and the royalty on the value of 
        the production which was reported, if the value which should 
        have been reported is greater than the value which was 
        reported. An underreporting constitutes a ``substantial 
        underreporting'' if such difference exceeds 10 percent of the 
        royalty on the value of production which should have been 
        reported.

SEC. 312. ROYALTIES.

    (a) Reservation of Royalty.--Production of all locatable minerals 
from any mining claim located or converted under the general mining 
laws, or mineral concentrates or products derived from locatable 
minerals from any mining claim located or converted under the general 
mining laws, as the case may be, shall be subject to a royalty of 8 
percent of the net smelter return from such production. The claim 
holder and any operator to whom the claim holder has assigned the 
obligation to make royalty payments under the claim and any person who 
controls such claim holder or operator shall be jointly and severally 
liable for payment of such royalties.
    (b) Duties of Claim Holders, Operators, and Transporters.--(1) A 
person--
            (A) who is required to make any royalty payment under this 
        section shall make such payments to the United States at such 
        times and in such manner as the Secretary may by rule 
        prescribe; and
            (B) shall notify the Secretary, in the time and manner as 
        may be specified by the Secretary, of any assignment that such 
        person may have made of the obligation to make any royalty or 
        other payment under a mining claim.
    (2) Any person paying royalties under this section shall file a 
written instrument, together with the first royalty payment, affirming 
that such person is liable to the Secretary for making proper payments 
for all amounts due for all time periods for which such person as a 
payment responsibility. Such liability for the period referred to in 
the preceding sentence shall include any and all additional amounts 
billed by the Secretary and determined to be due by final agency or 
judicial action. Any person liable for royalty payments under this 
section who assigns any payment obligation shall remain jointly and 
severally liable for all royalty payments due for the claim for the 
period.
    (3) A person conducting mineral activities shall--
            (A) develop and comply with the site security provisions in 
        operations permit designed to protect from theft the locatable 
        minerals, concentrates or products derived therefrom which are 
        produced or stored on a mining claim, and such provisions shall 
        conform with such minimum standards as the Secretary may 
        prescribe by rule, taking into account the variety of 
        circumstances on mining claims; and
            (B) not later than the 5th business day after production 
        begins anywhere on a mining claim, or production resumes after 
        more than 90 days after production was suspended, notify the 
        Secretary, in the manner prescribed by the Secretary, of the 
        date on which such production has begun or resumed.
    (4) The Secretary may by rule require any person engaged in 
transporting a locatable mineral, concentrate, or product derived 
therefrom to carry on his or her person, in his or her vehicle, or in 
his or her immediate control, documentation showing, at a minimum, the 
amount, origin, and intended destination of the locatable mineral, 
concentrate, or product derived therefrom in such circumstances as the 
Secretary determines is appropriate.
    (c) Recordkeeping and Reporting Requirements.--(1) A claim holder, 
operator, or other person directly involved in developing, producing, 
processing, transporting, purchasing, or selling locatable minerals, 
concentrates, or products derived therefrom, subject to this Act, 
through the point of royalty computation shall establish and maintain 
any records, make any reports, and provide any information that the 
Secretary may reasonably require for the purposes of implementing this 
section or determining compliance with rules or orders under this 
section. Such records shall include, but not be limited to, periodic 
reports, records, documents, and other data. Such reports may also 
include, but not be limited to, pertinent technical and financial data 
relating to the quantity, quality, composition volume, weight, and 
assay of all minerals extracted from the mining claim. Upon the request 
of any officer or employee duly designated by the Secretary or any 
State conducting an audit or investigation pursuant to this section, 
the appropriate records, reports, or information which may be required 
by this section shall be made available for inspection and duplication 
by such officer or employee or State.
    (2) Records required by the Secretary under this section shall be 
maintained for 6 years after cessation of all mining activity at the 
claim concerned unless the Secretary notifies the operator that he or 
she has initiated an audit or investigation involving such records and 
that such records must be maintained for a longer period. In any case 
when an audit or investigation is underway, records shall be maintained 
until the Secretary releases the operator of the obligation to maintain 
such records.
    (d) Audits.--The Secretary is authorized to conduct such audits of 
all claim holders, operators, transporters, purchasers, processors, or 
other persons directly or indirectly involved in the production or 
sales of minerals covered by this Act, as the Secretary deems necessary 
for the purposes of ensuring compliance with the requirements of this 
section. For purposes of performing such audits, the Secretary shall, 
at reasonable times and upon request, have access to, and may copy, all 
books, papers and other documents that relate to compliance with any 
provision of this section by any person.
    (e) Cooperative Agreements.--(1) The Secretary is authorized to 
enter into cooperative agreements with the Secretary of Agriculture to 
share information concerning the royalty management of locatable 
minerals, concentrates, or products derived therefrom, to carry out 
inspection, auditing, investigation, or enforcement (not including the 
collection of royalties, civil or criminal penalties, or other 
payments) activities under this section in cooperation with the 
Secretary, and to carry out any other activity described in this 
section.
    (2) Except as provided in paragraph (4)(A) of this subsection 
(relating to trade secrets), and pursuant to a cooperative agreement, 
the Secretary of Agriculture shall, upon request, have access to all 
royalty accounting information in the possession of the Secretary 
respecting the production, removal, or sale of locatable minerals, 
concentrates, or products derived therefrom from claims on lands open 
to location under the general mining laws.
    (3) Trade secrets, proprietary, and other confidential information 
shall be made available by the Secretary pursuant to a cooperative 
agreement under this subsection to the Secretary of Agriculture upon 
request only if--
            (A) the Secretary of Agriculture consents in writing to 
        restrict the dissemination of the information to those who are 
        directly involved in an audit or investigation under this 
        section and who have a need to know;
            (B) the Secretary of Agriculture accepts liability for 
        wrongful disclosure; and
            (C) the Secretary of Agriculture demonstrates that such 
        information is essential to the conduct of an audit or 
        investigation under this subsection.
    (f) Interest and Substantial Underreporting Assessments.--(1) In 
the case of mining claims where royalty payments are not received by 
the Secretary on the date that such payments are due, the Secretary 
shall charge interest on such underpayments at the same interest rate 
as is applicable under section 6621(a)(2) of the Internal Revenue Code 
of 1986. In the case of an underpayment, interest shall be computed and 
charged only on the amount of the deficiency and not on the total 
amount.
    (2) If there is any underreporting of royalty owed on production 
from a claim for any production month by any person liable for royalty 
payments under this section, the Secretary may assess a penalty of 10 
percent of the amount of that underreporting.
    (3) If there is a substantial underreporting of royalty owed on 
production from a claim for any production month by any person 
responsible for paying the royalty, the Secretary may assess a penalty 
of 10 percent of the amount of that underreporting.
    (4) The Secretary shall not impose the assessment provided in 
paragraph (2) or (3) of this subsection if the person liable for 
royalty payments under this section corrects the underreporting before 
the date such person receives notice from the Secretary that an 
underreporting may have occurred, or before 90 days after the date of 
the enactment of this section, whichever is later.
    (5) The Secretary shall waive any portion of an assessment under 
paragraph (2) or (3) of this subsection attributable to that portion of 
the underreporting for which the person responsible for paying the 
royalty demonstrates that--
            (A) such person had written authorization from the 
        Secretary to report royalty on the value of the production on 
        basis on which it was reported;
            (B) such person had substantial authority for reporting 
        royalty on the value of the production on the basis on which it 
        was reported;
            (C) such person previously had notified the Secretary, in 
        such manner as the Secretary may by rule prescribe, of relevant 
        reasons or facts affecting the royalty treatment of specific 
        production which led to the underreporting; or
            (D) such person meets any other exception which the 
        Secretary may, by rule, establish.
    (6) All penalties collected under this subsection shall be 
deposited in the Treasury.
    (g) Expanded Royalty Obligations.--Each person liable for royalty 
payments under this section shall be jointly and severally liable for 
royalty on all locatable minerals, concentrates, or products derived 
therefrom lost or wasted from a mining claim located or converted under 
this section when such loss or waste is due to negligence on the part 
of any person or due to the failure to comply with any rule, 
regulation, or order issued under this section.
    (h) Exception.--No royalty shall be payable under subsection (a) 
with respect to minerals processed at a facility by the same person or 
entity which extracted the minerals if an urban development action 
grant has been made under section 119 of the Housing and Community 
Development Act of 1974 with respect to any portion of such facility.
    (i) Effective Date.--The royalty under this section shall take 
effect with respect to the production of locatable minerals after the 
enactment of this Act, but any royalty payments attributable to 
production during the first 12 calendar months after the enactment of 
this section shall be payable at the expiration of such 12-month 
period.

SEC. 313. LIMITATION ON PATENT ISSUANCE.

    (a) Mining Claims.--After ________, 2001, no patent shall be issued 
by the United States for any mining claim located under the general 
mining laws or under this Act unless the Secretary determines that, for 
the claim concerned--
            (1) a patent application was filed with the Secretary on or 
        before ________, 2001; and
            (2) all requirements established under sections 2325 and 
        2326 of the Revised Statutes (30 U.S.C. 29 and 30) for vein or 
        lode claims and sections 2329, 2330, 2331, and 2333 of the 
        Revised Statutes (30 U.S.C. 35, 36, and 37) for placer claims 
        were fully complied with by that date.
If the Secretary makes the determinations referred to in paragraphs (1) 
and (2) for any mining claim, the holder of the claim shall be entitled 
to the issuance of a patent in the same manner and degree to which such 
claim holder would have been entitled to prior to the enactment of this 
Act, unless and until such determinations are withdrawn or invalidated 
by the Secretary or by a court of the United States.
    (b) Mill Sites.--After ________, 2001, no patent shall be issued by 
the United States for any mill site claim located under the general 
mining laws unless the Secretary determines that for the mill site 
concerned--
            (1) a patent application for such land was filed with the 
        Secretary on or before ________, 2001; and
            (2) all requirements applicable to such patent application 
        were fully complied with by that date.
If the Secretary makes the determinations referred to in paragraphs (1) 
and (2) for any mill site claim, the holder of the claim shall be 
entitled to the issuance of a patent in the same manner and degree to 
which such claim holder would have been entitled to prior to the 
enactment of this section, unless and until such determinations are 
withdrawn or invalidated by the Secretary or by a court of the United 
States.

SEC. 314. MINING CLAIM MAINTENANCE REQUIREMENTS.

    (a) In General.--(1) The holder of each mining claim converted 
under the general mining laws shall pay to the Secretary an annual 
claim maintenance fee of $100 per claim.
    (2) The holder of each mining claim located pursuant to the general 
mining laws shall pay to the Secretary an annual claim maintenance fee 
of $200 per claim.
    (b) Time of Payment.--The claim maintenance fee payable pursuant to 
subsection (a) for any year shall be paid on or before August 31 of 
each year, except that in the case of claims referred to in subsection 
(a)(2), for the initial calendar year in which the location is made, 
the locator shall pay the initial claim maintenance fee at the time the 
location notice is recorded with the Bureau of Land Management.
    (c) Oil Shale Claims Subject to Claim Maintenance Fees Under Energy 
Policy Act of 1992.--This section shall not apply to any oil shale 
claims for which a fee is required to be paid under section 2511(e)(2) 
of the Energy Policy Act of 1992 (Public Law 102-486; 106 Stat. 3111; 
30 U.S.C. 242).
    (d) Claim Maintenance Fees Payable Under 1993 Act.--The claim 
maintenance fees payable under this section for any period with respect 
to any claim shall be reduced by the amount of the claim maintenance 
fees paid under section 10101 of the Omnibus Budget Reconciliation Act 
of 1993 with respect to that claim and with respect to the same period.
    (e) Waiver.--(1) The claim maintenance fee required under this 
section may be waived for a claim holder who certifies in writing to 
the Secretary that on the date the payment was due, the claim holder 
and all related parties held not more than 10 mining claims on lands 
open to location. Such certification shall be made on or before the 
date on which payment is due.
    (2) For purposes of paragraph (1), with respect to any claim 
holder, the term ``related party'' means each of the following:
            (A) The spouse and dependent children (as defined in 
        section 152 of the Internal Revenue Code of 1986), of the claim 
        holder.
            (B) Any affiliate of the claim holder.
    (f) Co-ownership.--Upon the failure of any one or more of several 
co-owners to contribute such co-owner or owners' portion of the fee 
under this section, any co-owner who has paid such fee may, after the 
payment due date, give the delinquent co-owner or owners notice of such 
failure in writing (or by publication in the newspaper nearest the 
claim for at least once a week for at least 90 days). If at the 
expiration of 90 days after such notice in writing or by publication, 
any delinquent co-owner fails or refuses to contribute his portion, his 
interest in the claim shall become the property of the co-owners who 
have paid the required fee.
    (g) Credit Against Royalty.--The amount of the annual claim 
maintenance fee required to be paid under this section for any claim 
for any period shall be credited against the amount of royalty required 
to be paid under section 312 for the same period with respect to that 
claim.
    (h) Purchasing Power Adjustment.--The Secretary shall adjust all 
dollar amounts established in this section for changes in the 
purchasing power of the dollar every 10 years following the date of 
enactment of this section, employing the Consumer Price Index for all 
urban consumers published by the Department of Labor as the basis for 
adjustment, and rounding according to the adjustment process of 
conditions of the Federal Civil Penalties Inflation Adjustment Act of 
1990 (104 Stat. 890).

SEC. 315. SAVINGS CLAUSE.

    Nothing in sections 312, 313, or 314 shall be construed as 
repealing or modifying any Federal law, regulation, order, or land use 
plan, in effect prior to the effective date of such section, that 
prohibits or restricts the application of the general mining laws, 
including such laws that provide for special management criteria for 
operations under the general mining laws as in effect prior to the 
effective date of such section, to the extent such laws provide 
environmental protection greater than required under the general mining 
laws.

         TITLE IV--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

SEC. 401. REPEAL OF EXCLUSION OF CERTAIN EXTRATERRITORIAL INCOME.

    (a) In General.--Section 114 of the Internal Revenue Code of 1986 
(relating to extraterritorial income) is amended by adding at the end 
the following new subsection:
    ``(f) Termination.--This section shall not apply to transactions 
after December 31, 2001.''
    (b) Effective Date.--The amendment made by this section shall apply 
to transactions after December 31, 2001.

SEC. 402. DENIAL OF DEDUCTION FOR PAYMENTS OF EXCESSIVE COMPENSATION.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
(relating to deduction for trade or business expenses) is amended by 
inserting after subsection (h) the following new subsection:
    ``(i) Excessive Compensation.--
            ``(1) In general.--No deduction shall be allowed under this 
        chapter for any excessive compensation with respect to any 
        full-time employee.
            ``(2) Excessive compensation.--For purposes of this 
        subsection, the term `excessive compensation' means, with 
        respect to any employee, the amount by which--
                    ``(A) the compensation for services performed by 
                such employee during the taxable year, exceeds
                    ``(B) an amount equal to 25 times the lowest 
                compensation for services performed by any other full-
                time employee during such taxable year.
            ``(3) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Compensation.--
                            ``(i) In general.--The term `compensation' 
                        means salary, wages, and bonuses.
                            ``(ii) Part-year employees.--In the case of 
                        any part-year employee, the compensation of the 
                        employee shall be computed on an annualized 
                        basis.
                    ``(B) Employer.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as 1 employer.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 403. DISALLOWANCE OF DEDUCTIONS FOR ADVERTISING AND PROMOTIONAL 
              EXPENSES RELATING TO TOBACCO PRODUCT USE.

    (a) In General.--Part IX of subchapter B of chapter 1 of subtitle A 
of the Internal Revenue Code of 1986 (relating to items not deductible) 
is amended by adding at the end the following new section:

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO ADVERTISING AND 
              PROMOTIONAL EXPENSES.

    ``No deduction shall be allowed under this chapter for expenses 
relating to advertising or promoting cigars, cigarettes, smokeless 
tobacco, pipe tobacco, or any similar tobacco product. For purposes of 
this section, any term used in this section which is also used in 
section 5702 shall have the same meaning given such term by section 
5702.''
    (b) Conforming Amendment.--The table of sections for such part IX 
is amended by adding after the item relating to section 280H the 
following new item:

                                  ``Sec. 280I. Disallowance of 
                                        deduction for tobacco 
                                        advertising and promotion 
                                        expenses.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2001.

SEC. 404. SOURCE OF INCOME FROM CERTAIN SALES OF INVENTORY PROPERTY.

    (a) General Rule.--Subsection (b) of section 865 of the Internal 
Revenue Code of 1986 (relating to exception for inventory property) is 
amended to read as follows:
    ``(b) Exception for Inventory Property.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, income derived from the sale of inventory property 
        shall be sourced under the rules of sections 861(a)(6), 
        862(a)(6), and 863 and this section shall not apply.
            ``(2) Treatment of certain sales to related persons.--
                    ``(A) In general.--If any inventory property 
                produced (in whole or in part) by the taxpayer is sold 
                by the taxpayer (directly or indirectly) to a related 
                person--
                            ``(i) the portion determined under 
                        subparagraph (B) of the income from such sale 
                        shall be sourced in the United States or 
                        outside the United States depending on where 
                        the production activities occur, and
                            ``(ii) the remaining portion of such income 
                        shall be sourced under the rules of sections 
                        861(a)(6), 862(a)(6), and 863.
                    ``(B) Amount apportioned to production 
                activities.--For purposes of subparagraph (A), the 
                portion determined under this subparagraph is so much 
                of the income from the sale as does not exceed the 
                greater of--
                            ``(i) the portion of such income 
                        apportioned to production activities under 
                        section 863(b), or
                            ``(ii) the portion of the combined income 
                        of the taxpayer and related person attributable 
                        to such property which would have been 
                        apportioned to production activities under 
                        section 863(b) if such taxpayer and related 
                        person were one taxpayer.
                    ``(C) Related person.--For purposes of this 
                paragraph, the term `related person' means any person 
                related (within the meaning of section 482) to the 
                taxpayer.
            ``(3) Certain sales for use in united states.--If--
                    ``(A) a United States resident sells (directly or 
                indirectly) inventory property to another United States 
                resident for use, consumption, or disposition in the 
                United States, and
                    ``(B) such sale is not attributable to an office or 
                other fixed place of business maintained by such United 
                States resident outside the United States,
        any income of such United States resident (or any related 
        person) from such sale shall be sourced in the United States.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to sales after December 31, 2001.

 TITLE V--MISCELLANEOUS PROVISIONS TO REDUCE WASTEFUL AND INEFFICIENT 
                                SPENDING

SEC. 501. INTERNATIONAL SPACE STATION.

    The National Aeronautics and Space Administration shall not 
obligate any further funding for the International Space Station.

SEC. 502. OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Prohibition on New Contracts.--The Overseas Private Investment 
Corporation may not, on or after the date of enactment of this Act, 
issue any contract of insurance or reinsurance, or any guaranty, or 
enter into any agreement to provide financing.
    (b) Existing Contracts.--Subsection (a) does not require the 
termination of any contract or other agreement entered into before the 
date of enactment of this Act.

SEC. 503. PROHIBITION ON PROVISION OF NEW CREDIT BY THE EXPORT-IMPORT 
              BANK OF THE UNITED STATES.

    Notwithstanding any other provision of law, the Export-Import Bank 
of the United States may not, on or after the date of the enactment of 
this Act, provide any guarantee, insurance, or extension of credit, or 
participate in any extension of credit, except pursuant to a commitment 
made by the Export-Import Bank of the United States before such date of 
enactment.

SEC. 504. TRADE AND DEVELOPMENT AGENCY.

    (a) Termination of Agency.--Effective on the date of enactment of 
this Act, the Trade and Development Agency is abolished.
    (b) Administration of Existing Obligations.--The Secretary of State 
shall carry out the functions performed on the day before the date of 
enactment of this Act by the Trade and Development Agency only for 
purposes of administering contracts or agreements issued or entered 
into by the Trade and Development Agency before the date of enactment 
of this Act that are effective on such date of enactment. Such 
functions shall terminate when all such contracts and agreements 
expire.
    (c) Termination of Provisions.--Section 661 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2191 and following) is repealed, 
effective on the date of enactment of this Act, except that such 
section shall continue in effect with respect to the functions 
performed by the Secretary of State under subsection (b).
    (d) Termination of Affairs.--The Director of the Office of 
Management and Budget shall take the necessary steps to terminate the 
affairs of the Trade and Development Agency.
    (e) Appropriations.--Funds available to the Trade and Development 
Agency shall, on the date of enactment of this Act, be transferred to 
the Secretary of State for use in performing the functions of the Trade 
and Development Agency under subsection (b). Upon the expiration of the 
contracts and agreements with respect to which the Secretary of State 
is exercising such functions, any unexpended balances of the funds 
transferred under this subsection shall be deposited in the Treasury as 
miscellaneous receipts.

SEC. 505. TERMINATION OF INTERNATIONAL BROADCASTING AUTHORITIES.

    (a) Termination of Broadcasting to Cuba.--Effective October 1, 
2001, the Television Broadcasting to Cuba Act (22 U.S.C. 1465aa and 
following) and the Radio Broadcasting to Cuba Act (22 U.S.C. 1465 and 
following) are repealed.
    (b) Termination of International Broadcasting Operations.--
Effective October 1, 2001, the United States International Broadcasting 
Act of 1994 (22 U.S.C. 6201 and following) is repealed.

SEC. 506. JOINT PROCUREMENT OF PHARMACEUTICALS BY THE DEPARTMENT OF 
              DEFENSE AND THE DEPARTMENT OF VETERANS AFFAIRS.

    The Secretary of Defense and the Secretary of Veterans Affairs 
shall--
            (1) establish a joint office for the procurement of 
        pharmaceuticals for the Department of Defense and the 
        Department of Veterans Affairs; and
            (2) jointly develop and implement a common clinically-based 
        formulary for the pharmaceutical programs of the Department of 
        Defense and the Department of Veterans Affairs.
                                 <all>